Basel IV Planning

Stories>Basel IV Planning

In 2017, the Basel Committee on Banking Supervision (BCBS) published new recommendations regarding capital requirements in the banking sector. These recommendations – commonly referred to as Basel IV – include significant reforms in the standardised approach for credit risk, the IRB-approach, the quantification of CVA risk and operational risk approaches, enhancements to the leverage ratio framework and the implementation of a minimum output floor, which is aimed to constrain the extent to which banks can use internal models to drive down their capital requirements for credit and market risk.

The implementation of a single calculation engine to calculate risk weighted assets for all portfolios, with advanced analytics, will not only ensure compliance with Basel IV requirements, but will also facilitate optimal credit portfolio management in banks. With extensive risk management experience, knowledge of both local and international banking regulations, and a varied technical skillset, Monocle is uniquely equipped to provide holistic services to our industry-leading banking clients, ensuring the successful design and implementation of this strategic capability.

Monocle’s approach includes identifying an institution’s data readiness, designing solutions that will best meet each client’s specific future-state requirements, sourcing software from leading global vendors, and ensuring the seamless integration of all calculation engines with existing systems and processes.